GENERAL COMMENTS
The livestock complex didn't close with much excitement as all three of the markets ended the day lower. Given the economic turmoil that's stole the market's attention early this week, traders are being extremely cautious. Hog prices closed higher on the Daily Direct Afternoon hog report, up $2.71 with a weighted average of $78.11 on 12,303 hogs. May corn closed steady and May soybean meal closed $1.90 higher at $481.2. The Dow Jones Industrial Average is up 336.26 at 32,155.40.
LIVE CATTLE:
It was a painstaking day for the live cattle complex as the contracts once again traded lower and the spot April contract even fell below the market's 40-day moving average. The market's fundamentals haven't changed, but traders have grown leery. It's not surprising to see boxed beef prices pressured through February and into the first couple weeks of March, as, historically, this is a very reliable seasonal trend. But even so, traders have grown skeptical of doing too much in the market amid the other certain economic factors. April live cattle are $0.50 lower at $163.05, June live cattle are $0.45 lower at $157.75, August live cattle are $0.55 lower at $157.575. The cash cattle market remained quiet throughout Tuesday's market and won't likely see much action ahead of Thursday. Asking prices in the South are noted at $166-plus but are still unestablished in the North.
Tuesday's slaughter is estimated at 127,000 head, steady with a week ago and 3,000 head more than a year ago.
Boxed beef prices closed mixed: choice up $1.05 ($285.91) and select up $0.94 ($274.56) with a movement of 91.14 loads (60.62 loads of choice, 17.04 loads of select, 5.24 loads of trim and 8.24 loads of ground beef).
WEDNESDAY'S CATTLE CALL: $1.00 to $2.00 higher. With showlists incredibly current and packers operating with profitable margins, cash cattle prices should be able to see a $1.00 to $2.00 advancement this week.
FEEDER CATTLE:
It was another of red closes for the feeder cattle complex as traders looked for support but came up short handed by Tuesday's end. The combination of slightly higher corn prices amid a meek cattle complex led to lower closes for both the live cattle and feeder cattle contracts. March feeders closed $0.90 lower at $189.925, April feeders closed $1.33 lower at $195.75 and May feeders closed $1.10 lower at $201.30. At Oklahoma National Stockyards in Oklahoma City, Oklahoma, compared to last week, feeder steers and heifers traded steady to $2.00 lower, with the heavier weights only lightly tested. Stocker steers and steer calves traded steady to $4.00 higher. Heifer calves under 500 pounds traded steady to $2.00 higher; but heifers over 500 pounds traded $4.00 to $8.00 softer. Feeder cattle supply over 600 pounds was 51%. The CME Feeder Cattle Index for March 13: down $0.26, $189.51.
LEAN HOGS:
The lean hog complex closed lower too, not able to find enough technical nor fundamental support to rally its market through closing. Pork cutout values closed slightly lower which comes as a slight disappointment following Monday afternoon's higher cutout close. The biggest day of day loss for the individual cuts came from the ham, which fell $3.77, but the lion, butt and belly all saw mild decreases as well. April lean hogs closed $0.83 lower at $85.4, June lean hogs closed $1.03 lower at $101.575 and July lean hogs closed $0.90 lower at $103.95. Tuesday's hog slaughter is estimated at 485,000 head, steady with a week ago and 8,000 head more than a year ago. Pork Cutouts totaled 337.33 loads with 304.13 loads of pork cuts and 33.20 loads of trim. Pork cutout values are down $0.43 at $88.37. The CME Lean Hog Index for March 10: up $0.24, $79.86.
WEDNESDAY'S HOG CALL: Lower. Given that pork cutout values closed lower and that the market isn't seeing much support overall, I'd expect volumes to be larger on Wednesday but prices to trade steady to somewhat lower.
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